I could only hope that my last post have inspired parents to be open minded and finally know the importance of Financial Literacy. If you missed that one, here’s the link.
Kids grow faster than we imagine. As parents, we are actually in a race of time to teach them all that we know and enrol them to every class we can afford for them to be ready for the cruel world. Oh yes! It can be cruel if we don’t know much on how to handle things especially money matters.
If you don’t teach your kids how to manage money, they’ll someday learn from somebody else. And that’s not a risk you want to take! The key here for them to know that money can be their friend and enemy. It’s up to how you as parent enrich their mindset to know how to attain this.
Here’s are some tips on how you could give your kids the head start and set them up to win with money at any age:
Saving in a clear jar. Yes, piggy bank is the usual thing but children these age learn more by visual learning. Seeing how their saved coins slowly reach the lid wouldn’t only excite them but also show that saving is fun. Having this good relationship (Law of Attraction) with money at a young age is a great stepping stone.
Be a Role Model. Your children are constantly watching your every decision. It may be how meticulously you pick your apples in the grocery or how you and your husband talk about money and budgeting. Talking to them and teaching them through communication is as important as showing it through your actions.
Everything costs money. Teach them how to pay at a convenience store. Remember that children are visual learners. It’s easier for them to grasp the idea when they see their money exchanged with the goods/item you bought than just telling them by words what had happened.
Decision Making. When doing your holiday shopping, set everyone in your family a specific budget. With guidance, let your child decide on the items he/she would like to have. They could either splurge everything on one item they really want or choose to buy 3 items that fits their budget. They’ll also be able to practice how to read prices and sharpen their addition skills.
Commissions. It is important that your kids learn at a young age that money doesn’t grow on trees but instead needs to be earned. This would keep them grounded and appreciate more the money they get. Let them help around the house in exchange of some coins or phone time. With this, they become responsible young human beings.
Impulse buying. Imagine being in a toy store and your child sees this latest toy on the shelf and urged you to buy. Do you give in? Oh if you only have a chance to ask my my girls about this topic, I can hear them screaming my usual answer. “When it’s your birthday!!!!” hahaha… Oh yes do they await for their birthday to come.
But what’s funny is, when that day comes (it’s important that you stick to your words, no matter what!) and I bring them back for us to do the purchase, they refuse and want a different one. That’s when you insert your lecture! *wink!*
Giving. This is a tricky thing to do though, often, our instincts tells us to give someone who can also give us something in exchange. Maybe not the same day but still have the power to give back. That’s not the essence of giving, that’s exchange gift. When giving, teach your kids to share with those they think need the most and can’t give back to them.
Another assumption with giving is that it needs to be in big amount to make a difference. it’s important that you teach your children that even by giving a little can mean a lot to others.
Being content. Just by being mindful of how you live your daily life, you can reflect on how grateful you’ve been or not. Are you usually in a happy mood that stressed or depressed? It isn’t wrong to desire for things that you don’t have but knowing when you’ve got enough is also important. Having always the latest fad can be great but if your finances can’t afford it yet, then it becomes a problem. By showing your kids that you can still happily live life with things that you can afford.
This simple and easy money habits when instilled with children would surely affect how their relationship with money when they become adults themselves. Get your children ready as much as you can! As you can see, it won’t cost you much and even save you some $$$ in fact 😉